Post by stingray on Apr 25, 2015 12:18:50 GMT -5
If you watch the evening news, CNN, CNBC or MSNBC, the US economy is robust. The dollar is strong. Unemployment is falling. Obama has the nation going in the right direction. Reality could not be further from the truth.
Peter Schiff:
Despite a falling unemployment rate and record stock prices, Schiff contends the U.S. economy is much weaker than it appears, and that any move by the central bank to raise rates would only derail an already fragile economy.
"The U.S. economy is sicker than ever," said Schiff. "And the Fed is going to launch QE4 for the same reason they launched QE3, 2 and 1. They're going to try to stimulate the economy. Now that they stopped QE, the air is coming out of this bubble."
***** QE stands for Quantitative Easing. Meaning the Feds will continue to print more money to ward of inflation.****
And according to Schiff, if the Fed does raise interest rates later this year, the outcome will be catastrophic. "I think without QE4, we will be back in recession," he said. "It's going to be horrible. There's going to be a worse financial crisis than 2008."
"I'm not saying the sky is falling," he said. "But the U.S. economy is in a lot of trouble and we haven't recovered from anything thanks to the Fed."
Schiff had this response to his naysayers, "People are just oblivious."
Robert Russel:
I’ve never seen a time when there has been so much confusion, secrecy and outright lying about the strength and weakness of various nations. This may account for the back and forth and erratic action of the markets. One thing is for sure: ultimately the truth will be out. Until then, we are forced to play the guessing game. Remember that our leaders will do whatever they must to remain in power. It is said that the love of money is the root of all evil. I say that the desire for power is the root of all evil.
The key to this market is probably the US dollar index. Whenever the dollar is down, gold rises in terms of dollars. Oh, for the good ol’ days when the stock market ran on supply and demand. Now, when economic news is poor, it means that the Fed will put off raising rates, which the market likes. The other possibility is that if it turns out the US economy is still in recession, a desperate Fed will probably fight the bad news with QE4.
Egon von Greyerz:
Most industrialized countries are bankrupt, particularly in the West. Economies in the West and emerging markets are now stagnating. Central banks worldwide have printed trillions of dollars and credit has grown exponentially, but very little of the printed money has reached the global economy because the banks are bankrupt. If the banks valued their toxic assets at market value, no major bank would be standing.
We know that we have major economic and financial problems facing the world, Eric, but now we also have the geopolitical problems. The situation in the Middle East is still very bad and the mass migration that’s taking place out of North Africa is going to lead to major problems in Europe.
Debt has grown by $57 trillion since 2009, and all that debt has not led to any improvement in the world economy. All it has led to is more liquidity in the global stock markets, which are now massively overvalued.
On top of grossly overvalued stock markets, bond markets are now yielding zero or even negative rates. $5 trillion of government debt is now yielding negative returns. This has created a temporary situation that is totally unreal. This is why governments are trying desperately to lower rates even further in order to get the world economy going. But nothing is working.
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The list goes on. Each follower of Christ needs to ask God for guidance in these times. I'm not suggesting people have a prepper mentality, because most of that is fear induced. God will take care of his people. God took care of the Israelites in the desert for 40 yrs. Manna from heaven, water from rocks and protection from venomous snakes through obedience to God. But God may be speaking to you to be prepared because others will need to lean on your abilities. That's why obedience is soooooooo important in times like these. Sometimes prayer time is best when you keep your mouth shut and your heart open.
Peter Schiff:
Despite a falling unemployment rate and record stock prices, Schiff contends the U.S. economy is much weaker than it appears, and that any move by the central bank to raise rates would only derail an already fragile economy.
"The U.S. economy is sicker than ever," said Schiff. "And the Fed is going to launch QE4 for the same reason they launched QE3, 2 and 1. They're going to try to stimulate the economy. Now that they stopped QE, the air is coming out of this bubble."
***** QE stands for Quantitative Easing. Meaning the Feds will continue to print more money to ward of inflation.****
And according to Schiff, if the Fed does raise interest rates later this year, the outcome will be catastrophic. "I think without QE4, we will be back in recession," he said. "It's going to be horrible. There's going to be a worse financial crisis than 2008."
"I'm not saying the sky is falling," he said. "But the U.S. economy is in a lot of trouble and we haven't recovered from anything thanks to the Fed."
Schiff had this response to his naysayers, "People are just oblivious."
Robert Russel:
I’ve never seen a time when there has been so much confusion, secrecy and outright lying about the strength and weakness of various nations. This may account for the back and forth and erratic action of the markets. One thing is for sure: ultimately the truth will be out. Until then, we are forced to play the guessing game. Remember that our leaders will do whatever they must to remain in power. It is said that the love of money is the root of all evil. I say that the desire for power is the root of all evil.
The key to this market is probably the US dollar index. Whenever the dollar is down, gold rises in terms of dollars. Oh, for the good ol’ days when the stock market ran on supply and demand. Now, when economic news is poor, it means that the Fed will put off raising rates, which the market likes. The other possibility is that if it turns out the US economy is still in recession, a desperate Fed will probably fight the bad news with QE4.
Egon von Greyerz:
Most industrialized countries are bankrupt, particularly in the West. Economies in the West and emerging markets are now stagnating. Central banks worldwide have printed trillions of dollars and credit has grown exponentially, but very little of the printed money has reached the global economy because the banks are bankrupt. If the banks valued their toxic assets at market value, no major bank would be standing.
We know that we have major economic and financial problems facing the world, Eric, but now we also have the geopolitical problems. The situation in the Middle East is still very bad and the mass migration that’s taking place out of North Africa is going to lead to major problems in Europe.
Debt has grown by $57 trillion since 2009, and all that debt has not led to any improvement in the world economy. All it has led to is more liquidity in the global stock markets, which are now massively overvalued.
On top of grossly overvalued stock markets, bond markets are now yielding zero or even negative rates. $5 trillion of government debt is now yielding negative returns. This has created a temporary situation that is totally unreal. This is why governments are trying desperately to lower rates even further in order to get the world economy going. But nothing is working.
**********************************************************
The list goes on. Each follower of Christ needs to ask God for guidance in these times. I'm not suggesting people have a prepper mentality, because most of that is fear induced. God will take care of his people. God took care of the Israelites in the desert for 40 yrs. Manna from heaven, water from rocks and protection from venomous snakes through obedience to God. But God may be speaking to you to be prepared because others will need to lean on your abilities. That's why obedience is soooooooo important in times like these. Sometimes prayer time is best when you keep your mouth shut and your heart open.
